As of December 15, 2025, Cohen & Steers Ltd Duration Preferred & Income Fund Inc's estimated intrinsic value ranges from $1.91 to $30.54 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $30.54 | +43.3% |
| Discounted Cash Flow (5Y) | $27.61 | +29.6% |
| Dividend Discount Model (Multi-Stage) | $27.45 | +28.8% |
| Dividend Discount Model (Stable) | $25.79 | +21.0% |
| Earnings Power Value | $1.91 | -91.0% |
Is Cohen & Steers Ltd Duration Preferred & Income Fund Inc (LDP) undervalued or overvalued?
With the current market price at $21.31, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Cohen & Steers Ltd Duration Preferred & Income Fund Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.68 | 0.83 |
| Cost of equity | 7.0% | 9.5% |
| Cost of debt | 4.0% | 7.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.51 | 0.51 |
| After-tax WACC | 5.6% | 8.1% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $28 | $1,118M | 75.8% |
| 10-Year Growth | $31 | $1,203M | 56.7% |
| 5-Year EBITDA | $47 | $1,677M | 83.9% |
| 10-Year EBITDA | $46 | $1,653M | 68.5% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $25M |
| Discount Rate (WACC) | 8.1% - 5.6% |
| Enterprise Value | $303M - $438M |
| Net Debt | $315M |
| Equity Value | $(12)M - $123M |
| Outstanding Shares | 29M |
| Fair Value | $(0) - $4 |
| Selected Fair Value | $1.91 |
| Metric | Value |
|---|---|
| Market Capitalization | $620M |
| Enterprise Value | $935M |
| Trailing P/E | 9.25 |
| Forward P/E | 9.51 |
| Trailing EV/EBITDA | 19.05 |
| Current Dividend Yield | 742.30% |
| Dividend Growth Rate (5Y) | -2.36% |
| Debt-to-Equity Ratio | 0.51 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $9.16 |
| Discounted Cash Flow (5Y) | 25% | $6.90 |
| Dividend Discount Model (Multi-Stage) | 20% | $5.49 |
| Dividend Discount Model (Stable) | 15% | $3.87 |
| Earnings Power Value | 10% | $0.19 |
| Weighted Average | 100% | $25.61 |
Based on our comprehensive valuation analysis, Cohen & Steers Ltd Duration Preferred & Income Fund Inc's intrinsic value is $25.61, which is approximately 20.2% above the current market price of $21.31.
Key investment considerations:
Given these factors, we believe Cohen & Steers Ltd Duration Preferred & Income Fund Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.